To whom is the Additional Funds (3 Months) payment made for a Checkersrallys Site Built Restaurant?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
ased operations.
1. MODULAR DESIGN DRIVE-THRU RESTAURANT
| Type of expenditure | Amount | Method of payment | When Due | To whom payment is to be made |
|---|---|---|---|---|
| Initial Franchise Fee (See Note 1) | $20,000 - $30,000 | Lump sum | At time of signing the F |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 30–39)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the Additional Funds - 3 Months payment, which ranges from $50,000 to $120,000, is paid to employees, suppliers, utilities, and other similar entities. This payment is made as incurred.
This estimate covers the franchisee's pre-opening expenses and working capital for the first three months of operations. Pre-opening expenses, estimated between $10,000 and $40,000, include professional fees, organizational expenses, salaries during training, travel, living and miscellaneous expenses while attending training, utility deposits, and salaries for a manager and some crew members during the 30-day period before opening. Working capital for the first 3 months, estimated between $30,000 and $60,000, includes general operating expenses, such as lease payments, inventory, payroll, payroll expenses, facility expenses, insurance, pest control, security, repairs and maintenance and complimentary sales and other costs.
Checkersrallys notes that these figures are estimates, and actual costs may vary based on factors such as management skill, local economic conditions, market competition, prevailing wage rates, and sales levels during the start-up phase. The estimate does not include any debt service. Prospective franchisees should carefully consider these factors and create a detailed budget to ensure they have sufficient capital to cover the initial operating period.